Analysis Of Integration Risks Of Cross-border Mergers And Acquisitions Under The Background Of "The Belt And Road"

In recent years,driven by the strategy of "The Belt and Road",Chinese government hopes that enterprises can enhance their national competitiveness through Cross-Border Mergers and Acquisitions(hereinafter referred to as “Cross-Border M&A”),so as to obtain overseas resources and ensure national security;and enterprises hope to acquire strategic resources and advanced technology by Cross-Border M&A.Meanwhie,they want to expand market share to enhance their international competitiveness.However,most of the countries along “The belt and Road” route are emerging economies and developing countries.The financial system of them is not complete enough.Political,economic and social environment in these countries are complex and changeable,which puts forward high requirements for the adaptability and management level of enterprises.In a word,the two sides of Cross-Border M&A are in different environments,which will greatly affect the success rate of merger integration.Based on the above understanding,start with "The Belt and Road",the author chose the case that Geely Holding Group(hereinafter referred to as "Geely")acquired 49.9% of the shares of the Proton Holding(hereinafter referred to as "Proton")and Lotus Cars(hereinafter referred to as “Lotus”)under DRB-HICOM Holding(hereinafter referred to as "DRB")in May 2017.From this case,the author studied for possible risks during integration.First of all,this thesis summarizes the research status of Cross-Border M&A and the risk of intergration between domestic and overseas.Then,combining with "The Belt and Road" policy,introduces the theoretical knowledge of Cross-Border M&A and integration risks,analyzes the causes and integration risks of Cross-Border M&A under “The Belt and Road”.Next,through the case study,analyze the motivation and integration risk of Geely's acquisition of Proton,and analyze the weight of each risk factor based on the AHP.Finally,with the inspiration of the case,we put forward the corresponding preventive measures and suggestions,hope that more enterprises in China can successfully complete the integration stage after the Cross-Border M&A in the future.The study has found that the integration risks of Chinese enterprises' Cross-Border M&A under "The Belt and Road" include internal and external risks.The internal risks are mainly from the financial status,management and management capabilities,human resources management and internal culture of enterprises,while external risks should be concentrated in politics,law,economy,national culture and so on.Based on these risks,the author also put forward corresponding preventive measures according to the internal and external measures,so as to cope with the integration risks of Cross-Border M&A.